Bloomberg

Bank chief picked by Erdogan returns to policy mainstream

The decision suggests that unlike his recent predecessors, Agbal has Erdogan's backing for a more orthodox effort to protect the lira and curb inflation. Foto: AP

Turkey's central bank took a major step back toward mainstream policy making with the tacit endorsement of longtime skeptic President Recep Tayyip Erdogan, raising interest rates by the most in over two years and spurring a rally in the currency.

The Monetary Policy Committee led by Governor Naci Agbal on Thursday lifted the one-week repo rate to 15% from 10.25%, as forecast by most analysts polled by Bloomberg. The move brings the benchmark 20 basis points higher than the central bank's weighted average cost of funding, which Oxford Economics said "translates into a symbolic tightening."..

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